Remortgage tips
February 13, 2009 by admin
Filed under Remortgage Advice
When the Bank of England’s base rate is falling, many homeowners with fixed-rate mortgages may be tempted to remortgage and switch over to a tracker mortgage with a lower interest rate.
If you’re one of them, it’s vital you do the maths, think ahead - and remember why you chose a fixed-rate mortgage in the first place. That’s not to say you should definitely stick with your fixed rate, but you certainly should think it through carefully.
Do the maths
How much would it cost you to remortgage? If your current contract mentions an ‘Early Repayment Charge‘ (ERC), that means you’ll have to pay your mortgage lender a certain amount if you exit your mortgage deal before a pre-defined time. And be aware that the tracker mortgage you’re looking at could well come with an arrangement fee. Depending on the size of these two figures, you could actually end up paying more than you’d save if you did remortgage.
Think ahead
What do you think lies ahead for the economy? Interest rates might be dropping now, but no-one anyone knows where they’ll be in a year. If they suddenly shot ‘through the roof’, the consequences for people with tracker mortgages could be severe - but people with fixed-rate mortgages would see no change at all to their monthly payments.
Of course, many people with tracker mortgages may be planning to keep a close eye on the base rate and switch to a fixed-rate mortgage as soon as it starts to rise, but is this really a safe strategy? If the base rate (and therefore the cost of their tracker mortgage) jumps several points overnight, they may well find that the interest charged on all new fixed-rate deals jumps just as much - and just as suddenly! In other words, the only fixed-rate deals available could be a lot more expensive than the one they’re on right now.
Remember why…
So remember why you chose a fixed-rate mortgage to begin with. Whatever happens to the economy, a fixed rate means your monthly mortgage payments won’t change.
After all, the base rate can only sink to zero - but there is (in theory, at least) no upper limit at all. Seeing your monthly mortgage payments drop by, say, £200, might be enjoyable, but what would happen to your budget if they suddenly rose by £200?
If you’re not certain you could afford that, then maybe you should stick with your fixed-rate mortgage. You won’t get to celebrate when the base rate goes down, but you won’t need to worry about it going up either - and when the economy’s going through an unpredictable period, isn’t it good to have a bit of stability in your finances?
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Make the most of today’s mortgage market
February 3, 2009 by admin
Filed under Mortgage Advice, Remortgages
It’s no secret that it is harder to get a mortgage than it was, say, 18 months ago. Fears of losses amongst banks and other financial institutions, partly due to the ‘relaxed’ lending of recent years has caused them to tighten their lending criteria - and that means fewer mortgages on the market.
That said, it’s by no means impossible to get a mortgage - in many cases, it can just take a little more searching to find a suitable deal. And due to many lenders recently cutting rates, buying a home in the present market can be a good financial move.
First-time buyers
In many respects, first-time buyers are the ‘winners’ in the current mortgage market. Providing they are offered a mortgage, first-time buyers are faced with lower house prices, lower interest rates, more sellers than usual, and because they don’t have an existing property to sell, the sale can often go through much more quickly than sales by existing homeowners.
Some first-time buyers are hesitant to enter the mortgage market, knowing that their home is likely to lose value from the beginning. While this is quite often the case at the moment, it is not necessarily a reason to stay away from the market.
Most lenders currently require a 15-20% deposit for their most basic mortgage deals. Very few analysts predict an equivalent drop in house prices, so it’s unlikely that new buyers will fall into negative equity in the near future.
Even if new homebuyers do fall into negative equity initially, this will only a significant issue if they are looking to sell their home or remortgage in the short term.
Existing homeowners
Existing homeowners potentially face a slightly more difficult situation when trying to remortgage, especially if they have fallen into negative equity.
If a homeowner is in negative equity, it can be difficult to move house or remortgage. Since selling their home will not cover the existing mortgage, homeowners must make up the difference, whether in a lump sum or instalments. Homeowners who choose to stay put while in negative equity will have to pay their lender’s standard variable rate (SVR) at the end of any fixed term deals.
Providing current homeowners have avoided this situation, they should be able to benefit in much the same way as first-time buyers. In particular, the lower interest rates will mean that homeowners who remortgage are likely to enjoy much lower monthly mortgage payments.
Get mortgage advice
Above all, good mortgage advice is essential to getting the most out of the mortgage market.
With lenders more cautious about their lending, the best deals can often be difficult to find. By speaking to an expert mortgage adviser, you will benefit from the knowledge of someone with experience in the mortgage market, as well as cutting out the long hours you could spend searching for the best deals yourself.
Getting a remortgage
January 28, 2009 by admin
Filed under Remortgage Articles
If you are thinking of getting a remortgage click here
Getting a remortgage is one of the biggest financial decisions you will have to make. As with a new mortgage, it’s a big financial commitment - but when it comes to remortgaging, it’s possible to save yourself a lot of money each month compared with your existing mortgage agreement.
Why do people remortgage?
End of existing mortgage deal
Most mortgage deals offer special terms that usually last a few years before reverting to the lenders standard variable rate, and once those terms are up, it’s time to remortgage.
You can either remortgage with your existing lender, or with a new lender. The most important thing for you will probably be finding the mortgage deal with the lowest interest rate in order to keep your monthly payments as low as possible.
Debt consolidation remortgage
If you are in debt, you can also use a remortgage to help repay those debts. A debt consolidation remortgage involves withdrawing some of the equity in your home (e.g. any deposit, payments you have made and any increase in your home’s market value) and using it to pay off your debts. You will then repay the borrowed amount on top of your regular mortgage payments.
Tips for getting a remortgage
If you are looking for a remortgage, it’s sensible to take a few simple steps to improve your chances of getting the best deal.
1. Check your credit history
Your credit history is a record of all your credit activity over the past few years. When you apply for credit (including a remortgage), the lender will assess your credit history, based on their own lending criteria, to decide whether or not they can lend you the money.
However, mistakes can sometimes occur - and it’s important to ensure that your credit history is up to date and free of errors in order to give the best account of your credit activity.
All the major credit reference agencies (Equifax, Experian and CallCredit) offer online credit check facilities. If you find any errors on your credit file, all you need to do is call the creditors concerned and ask to have the entry corrected.
2. Take your time
It’s important to give yourself adequate time when looking for a remortgage. Don’t leave it until the last few weeks. Two or three months should be enough to get a reasonable idea of the range of mortgage deals on offer, and where to find them.
Some lenders will allow you to ‘reserve’ your mortgage deal a few weeks in advance - so you shouldn’t have to worry about the best deals being taken off the market shortly before you start your new terms.
3. Get professional mortgage advice
It’s possible to search for a remortgage on your own, but a lot of people prefer to get help from a professional mortgage adviser. Speaking to a mortgage adviser about finding a remortgage can greatly reduce the time and effort involved in finding the best remortgage deals.
A mortgage adviser will be happy to give you free, impartial advice on your remortgage, and may be able to help you find the best deal for your circumstances.
If you are thinking of getting a remortgage click here
What happens if I don’t remortgage?
January 26, 2009 by admin
Filed under Remortgage Articles
If you are coming to the end of your existing mortgage deal, then you may be considering a remortgage. A remortgage, in many ways, works in the same way as finding your first mortgage. However, a remortgage can be a very good opportunity to make savings on your monthly outgoings.
If you do not remortgage, you will normally automatically move onto your lender`s SVR (standard variable rate). This is the lender`s basic rate, which other mortgage deals are often based around.
Shed Burden Some Mortgage Through Bad Credit Remortgage UK
January 9, 2009 by admin
Filed under Mortgage Articles, Remortgage Articles
Bad Credit Remortgage is especially designed remortgage for all those UK residents who have bad credit as they failed to make timely payments in the past, have arrears, defaulted on payments or have county court judgments in their names. Such people are approved bad credit remortgage without much credit enquires. This is mainly because bad credit remortgage is a secured one for the lender and so cuts risks.
You may opt for bad credit remortgage in the UK for variety of reasons. For instance you may want to release equity in your home so that you can use the money for home improvements, buying car, for wedding or holiday expenses or for debt consolidation. Or simply, you may be looking for a longer term remortgage for reducing your monthly payments towards its installments.
There are lenders in the UK who offer bad credits remortgage at competitive rate of interest. You should search extensively for such lenders on internet. Take their rate quotes which are very crucial for a suitable deal. Rate quotes of bad credit remortgage lenders in the UK gives you a clear picture of prevailing interest rate scenario. This enables in picking up a suitable remortgage deal for your circumstances. Go through the lenders terms and conditions carefully before signing a deal with him.
The Case for Remortgage
January 7, 2009 by admin
Filed under Mortgage Articles, Remortgage Articles
When you choose to explore the remortgage business, you will often find a plethora of interest rates that are competitively priced; additionally, they are usually lower than the average to above average interest rates that are typically given to first time home buyers.
Consequently, after taking advantage of remortgage options, you may be positioning yourself to recover hundreds if not thousands in savings over the lifetime of your remortgage loan, compared to if you stayed with your current lender.
Reason 2 Remortgage Lets You Exercise Your Options
Its human nature to always wonder whether the grass is greener on the other side of the fence. And, sometimes, it absolutely is, especially when you are discussing remortgage plans.
If you are feeling that you need to stay with your current mortgage because of a sense of loyalty, that is understandable avoidance of major or even minor change is human nature, after all; but do not forget that you should always know what you are missing. You could actually be throwing away copious amounts of money if you do not exercise your options as a consumer and find out about remortgage packages.
Remember the process of remortgage is basically free enterprise at work, and it can be quite lucrative for home and property owners.
Reason 3 Remortgage Can Help Consolidate Your Debts
Are you and your family plagued by bills that just never seem to go away? Do you find yourself trying in vain to chip away at credit card bills that only seem to mount and never seem to recede? Does it seem as if the light at the end of the tunnel is decades away? Allow remortgage to help!
Many financial institutions offer special debt consolidation plans as part of a remortgage package; hence, you can combine numerous debts into one lump remortgage amount. This means you will only have to make one payment to one locale, which will save you both time and money in the long run. It can also assist in saving a lagging credit history by providing you with the perfect platform to showcase what an excellent consumer you are.
Reason 4 Remortgage Can Open You Up to Many Options
Though we sometimes like to pretend its not true, we all know that money makes the world go round. So why not put more into your coffers with a remortgage?
Take the dream vacation now. Make your home repairs this season. Send your son or daughter to private school. With a remortgage, you can make your goals a reality.
Remortgage Quote: Help You Judge for the Best Option
January 7, 2009 by admin
Filed under Mortgage Articles, Remortgage Articles
Taking the basic information about your personal circumstance and financial condition, a remortgage quote can help you find the perfect financial solution for you. Since, lenders may have the varied terms and conditions, so, it’s the remortgage quote that searches the best possible options for you.
You can go for an online search for the companies which are providing remortgage services. You can easily find their quote and can also compare among them for their varied terms and conditions. With the help of concerned quote these company can help you for right financial options in a very less time. These quotes are free of any charge, so just you have to fill a simple form attached with this and get about the feasibility of the concerned financial help in a while.
Remortgage is process of refinancing of your home or other asset. This is mainly done to find better options for your mortgage done on your home. The most common motto for this to avail a lower interest rate on the alternative, and often it is done to capitalize the raised value of the equity of your home. You can any time switch over to the next mortgage to payoff your existing mortgage at a time. In this, generally you have to pay a penalty for your prepayment. So, you always check the feasibility of the remortgage, as it can be a futile effort when the prepayment charges over rides the margin you get on the remortgage.
Market is flooded with the options, so you always need a judicious advice for the selection of the right financial tool. Remortgage quote can help you get the best out of them and saves your precious time. With the help of it, you come to know the entire ins and outs of your loan facility and often save yourselves from an undue hassle hidden with a mortgage.
Cash Back Remortgage Uk: Get Maximum Benefit of the Mortgage
January 6, 2009 by admin
Filed under Mortgage Articles, Remortgage Articles
Cash back remortgage UK is a way through which a borrower can receive an initial sum of money that can be further used at some other places like stamp duty, buying furniture, renovations etc. In most likely cases cash is payable at the end of remortgaging term. Just like any other financial deal, in case of early repayment you will have to pay penalty.
A cash back remortgage differs from any other general remortgage in the sense that the customer is entitled to receive a lump sum as well as the fixed remortgage amount. The amount that can be availed in cash back remortgage differs from lender to lender. This type of remortgage has nothing to do with the APR but is available within the lender’s ‘Standard Variable Rate (SVR)’ product. What draws a demarcation between APR and SVR is that the later depends on the Bank of England’s base rates.
What is then the point of interest of the lenders with the cash back remortgage? The lenders charge a part of the cash back along with some percentage of remortgage amounts as so called arrangement fee. Therefore the choice of lender makes a lot of difference. Also the variation in SVR directly influences your monthly repayments, hence it’s better to keep track of the present market scenario. Just keep in mind these simple points, opt for cash back remortgage and make proper use of it.
Debt
January 2, 2009 by admin
Filed under Debt, Remortgage Advice
What should you do if you fall into arrears with your mortgage, or generally need help with your debts?
The below list features some of the people you can call to get help with debt.
- Citizens Advice Bureau - The CAB are a first port of call for many people. They may be able to give you advice on your options.
- Think Money - Think Money can provide you with help on mortgages, remortgages and debt.
- Gregory Pennington - Reputable debt management company who provide various debt solutions.
- Debt Advisers Direct - Debt Advisers Direct specialise in debt consolidation and debt management.
- Shelter - Shelter are a housing and homelessness charity.
- Your local council - Your local council may be able to help with housing and debt related problems.
Debt Consolidation
January 2, 2009 by admin
Filed under Remortgage Advice
If you have loans, credit cards or store cards with different companies you can consolidate all these debts, making them much easier to pay off.
Benefits of a debt consolidation mortgage:
- Remortgage and release the cash tied up in your property
- Consolidate existing loans, credit cards & store cards
- One lower affordable amount to pay each month
If you have equity in your property you could remortgage and release cash to pay off existing debts. A debt consolidation mortgage can reduce your monthly outgoings without damaging your credit rating.
Click here to find out if you can get a debt consolidation mortgage.